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16                               SHIPPING PRACTICE

merchant, the consignee acting only as the selling agent at
port of destination.

As the goods are sold, entries of such transactions are

made in a special account known as the " ...............

Consignment a/c," and from time to time the receiver for-
wards to the merchant an account of sales. He receives in
return for his services in the disposal of the goods a com-
mission by way of remuneration, the proceeds of the sale
being forwarded to the merchant at agreed periods.

To comply with currency regulations and control, the
method of shipping goods against bank credits has rapidly
become established. The overseas customer issues his order
for goods, and arranges a bank credit for payment in the
seller's country. Credits are issued as unconfirmed or re-
vocable, irrevocable, confirmed irrevocable, etc.

Shipment on the exact terms of the credit earns payment
against documents. The foolish insistence on obscure
descriptions and bankers' lack of knowledge of shipping
often results in the bank credit system becoming cumber-
some and the subject of hot dispute.

On receipt of the bill of lading at the port of destination
the consignee, after endorsing the document, presents the
Ml at the shipping office and secures in return a delivery
onjej^ which is an authority to the master of the ship to
make delivery of the goods in exchange for this order.

A merchant shipper who uses the chartered ship as his
method of transport has considerably less work to do; he
has merely to supply the goods in bulk to the steamer,
receive payment for the goods, and forward the bill of
lading to the consignee. The main difference here is that
the consignee or receiver does not usually pay his freight
until such a time as the goods are discharged. This, how-
ever, is dealt with fully in Chapters VII and Yin.